Hamilton Pratt

The British Franchise Association

The British Franchise Association is the only franchise body in the United Kingdom.  It is principally a franchisor organisation although it does have a franchisee forum.

The British Franchise Association was established in the late 1970’s  to promote franchising in this country.  This organisation is now based at Henley on  Thames  (see Appendix for  address) where a full time director  and other  staff are based.  Its aim remains the promotion of ethical  franchising by:-

  • Publications-  The BFA produces an  information pack which provides advice on  buying  a  franchise  and includes a list of BFA members.   The BFA also provides franchisor work books which contain information for companies wishing to expand their business through franchising.
  • Exhibitions-  Exhibitions are organised in London and Birmingham at which franchisors and advisors take stands.
  • Encouraging Membership of the British Franchise Association-  There  are three categories of membership.
    • a full member;
    • an associate member for companies who are developing a franchise; and
    • affiliate membership  for  lawyers,  accountants,  bankers  and  franchise consultants.

In addition “provisional listing” is available for those franchisors who are at the early stage of their franchise development.

An applicant for membership must complete an application form and disclosure questionnaire which remains confidential to the BFA.  A franchisor applying for membership must demonstrate that:-

  • the business  itself  is viable.  The production of  24  months’  recent audited  accounts will be required including trading accounts, which show that the  business  is  capable  of  being run at a  profit  that  will  support  a franchised network;
  • the operating units in the business can be successfully replicated.   The production  of  12 months’ recent audited accounts is required for  a  managed arm's-length  pilot  franchise,  or  a fully-fledged  pilot  franchise.   These accounts  must  show a trading performance at least in line with the  business plan set for the pilot franchise;
  • the contractual terms to be offered to prospective franchisees comply with the Association’s  ethical requirements.  A copy of the then current agreement and any changes thereto  should be lodged with the Association;
  • the offer documents to be given to prospective franchisees present a full and realistic picture of  the franchise proposition.  A copy  of  the  then current offer documents and any changes thereto should be lodged with  the Association;
  • the franchise network has developed to a viable number of franchised outlets.  Continuity and longevity are key characteristics. In the case of an application for full membership financial records should be provided to show that the franchised network is stable and profitable.

Web links:

British Franchise Association  www.british-franchise.org